Discounts and promotions
General calculation · any country
A discount cuts what you earn on every sale. Find out how much more you would need to sell to earn the same as without it.
You need to sell more
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Discounted price
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Units needed
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Profit per unit (before)
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Profit per unit (discounted)
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Compare different discounts
| Discount | Price | Profit per unit | Sell more |
|---|
How it is calculated
- Profit per unit = price − variable cost.
- With the discount: price × (1 − discount) − variable cost.
- Sales needed = current sales × (profit per unit before ÷ profit per unit with the discount).
Assumptions
- Variable cost per unit stays the same during the promotion.
- Fixed costs do not change.
- Amounts exclude sales taxes.